Despite being immune to wear and tear, virtual bank cards need expiry dates to comply with industry standards and security protocols for online transactions.
While virtual bank cards are not susceptible to wear and tear like their physical counterparts, they still require an expiry date. This is due to existing payment acceptance and card registration standards that necessitate an expiration date for all cards, regardless of their physical form. South African bank account holders are accustomed to renewing their debit or credit cards every few years, either by receiving a new card in the mail or collecting it from a branch.
Physical bank cards from major payment processing companies like Mastercard or Visa typically expire after three, four, or five years. This practice serves two primary purposes: enhancing security and addressing physical wear and tear on the card.Since the first bank cards were issued in the late 1960s, card security and technology have progressed significantly. By automatically decommissioning old cards, banks ensure their customers have access to the latest features, which can offer convenience and improved security. The expiry date also prevents the use of a lost or abandoned card by an unauthorized individual who might find it. Although bank card materials have improved alongside technological advancements, cards can still experience wear and tear from frequent use in wallets, bags, and point-of-sale machines. Even EMV chips, used for dip and tap payments, may become unreadable over time.Virtual cards, which have gained popularity due to the rise of digital wallets, are not subject to the same degradation issues as physical cards. Their digital nature suggests they could continuously receive new security features without needing replacement. However, several major South African banks have explained to MyBroadband why virtual cards still require expiry dates.Capitec and FNB stated that while virtual cards are not affected by physical wear and tear, they must adhere to industry standards and support online transactions, where an expiry date is often required. FNB chief operating officer Gareth Rimmington emphasized that bank-enabled virtual cards need compatibility with existing payment acceptance and card registration standards. Discovery Bank explained that the expiration date is considered a mandatory field within the ISO8385 message type for certain transaction types. This standard defines the format of the message containing credit and debit card data exchanged between devices and card issuers during a transaction. Rimmington noted that virtual card renewal periods are generally longer than those for physical cards. FNB’s virtual cards have a 5-year validity period, independent of a customer’s physical card expiration date. The renewal involves reviewing and renewing the encryption and certificates necessary for card security. Absa card and rewards executive Tshipi Alexander also mentioned that the expiry date safeguards customer information and protects against fraud.Despite the expiry date, obtaining a new virtual card is significantly less cumbersome than a physical card. Virtual cards can be generated directly within your banking app within minutes, eliminating the need for branch visits or card deliveries. Some banks, including Discovery Bank, will automatically generate a replacement virtual card close to the expiry date. The primary concern for customers might be updating their card details across all online platforms with active subscriptions
Virtual Cards Expiry Dates Security Online Transactions Physical Cards Digital Wallets Bank Standards ISO8385
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